Sony to slash 10,000 jobs

Japanese electronic giant Sony is reportedly to cut 10,000 jobs by the end of the year, a reduction of about 6 per cent of the workforce as the company struggles to return to profitability.

The Japanese Nikkei newspaper reported that a reorganisation of Sony's LCD and chemical business units is planned while the company intends to accelerate the move towards growth industries such as mobile devices.

The paper also reported that senior business execs that served during the disastrous year of losses, including former CEO Howard Stringer, may also be asked to return their bonus payments.

Sony's annual report due next month is expected to announce losses of nearly US$3 billion.

The company has tasked former PlayStation business boss Kaz Hirai with the daunting task of turning the business around amid difficult trading conditions and strong competition from rival electronics firms.